The announcement by Trump could impact India, which has been among Iran’s five largest trade partners in recent years. File photo
Trump slaps 25 pc tariff on 'any country' trading with Iran; India to face fallout
The order targeting Tehran's partners could impact India's rice exports and the strategic Chabahar port project amid existing US trade levies on New Delhi
US President Donald Trump has now come down heavily on countries “doing business" with Iran, announcing that they will have to pay a 25 per cent tariff on its trade with Washington.
This move could impact Tehran’s major trading partners such as India, China and the UAE.
"Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25 per cent on any and all business being done with the United States of America. This Order is final and conclusive,” Trump said in a post on Truth Social Monday.
Among Iran’s major trading partners are China, Turkey, India, the UAE, Pakistan and Armenia.
Also read: Iran open to negotiations but ready for war as Trump weighs military action
The announcement by Trump could impact India, which has been among Iran’s five largest trade partners in recent years.
The US has already imposed 50 per cent tariffs on India, among the highest in the world, including 25 per cent for Delhi’s purchases of Russian energy.
Major Indian exports
According to the Indian Embassy in Tehran, major Indian exports to Iran include rice, tea, sugar, pharmaceuticals, manmade staple fibres, electrical machinery and artificial jewellery, while major Indian imports from Iran consist of dry fruits, inorganic/organic chemicals and, glassware.
According to the Observatory of Economic Complexity (OEC), an online data visualisation and distribution platform, exports from India to Iran in 2023 totalled 1.19 billion dollars, while imports into India totalled 1.02 billion dollars.
Also read: 'Iran wants to negotiate, they are tired of getting beaten up by US': Trump
During 2023, the top exports from India to Iran were rice (USD 734M), soybean meal (USD 96.8M), and bananas (USD 52M). Top exports from Iran to India included Acyclic alcohol derivatives (halogenated, sulphonated, nitrated) (USD 309M).
“India and Iran share a millennia-long history of interactions. The contemporary and relationship draws upon the strength of these historical and civilisational ties, and continues to grow further marked by high-level exchanges, commercial and connectivity cooperation, cultural and robust people-to-people ties,” the Indian Embassy in Tehran has said.
Chabahar port
A key aspect of India-Iran ties is the joint development of the Chabahar port. Located in the Sistan-Balochistan province on the energy-rich Iran’s southern coast, the Chabahar port is being developed by India and Iran to boost connectivity and trade ties.
In May 2015, India and Iran signed an MoU on ‘Partnership of India in the Development Plan of Chabahar Port’.
This was followed by the signing of a Trilateral Agreement in May 2016 between India, Iran and Afghanistan to establish the International Transport and Transit Corridor (Chabahar Agreement). India is participating in the development of the first phase of the Shahid Beheshti Terminal, Chabahar Port in cooperation with Iran, the Ministry of External Affairs has said.
In December 2018, an Indian company, India Ports Global Limited (IPGL) through its wholly owned subsidiary, India Ports Global Chabahar Free Zone (IPGCFZ), took over the operations of Chabahar Port.
In May 2024, IPGL signed a ten-year contract with the Ports and Maritime Organisation (PMO) of the Islamic Republic of Iran for equipping and operating the Shahid Beheshti Terminal of Chabahar Port.
(With inputs from agencies)